Informal sector: CCP takes note of exemptions to transporters

ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued a Policy Note to the Punjab Revenue Authority (PRA) and the Sindh Revenue Board (SRB) recommending them to withdraw exemptions granted to the informal transporters of goods, from sales tax on inter-city carriage of goods by rail or road.

The CCP took notice of the circulars issued by the PRA and the SRA on September 1, 2015 and July 24, 2015, respectively granting exemptions to the informal transporters of goods from sales tax. It observed that the exemptions granted to the non-corporate entities had placed the corporate sector at a competitive disadvantage. The Policy Note stated that preferential tax treatment is a competition concern as it creates an arbitrary distinction between services providers.

Published in The Express Tribune, June 9^th, 2016.

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